Although Amazon's Kindle is enjoying strong sales, Piper Jaffray analyst Gene Munster told Barrons in a recent interview that the company needs to cut the price of its e-reader if it wants to compete with the iPad.
According to Barrons, Munster told the publication that Amazon should cut the price of the Kindle from its current $259 price tag to $149. Munster believes that the iPad could cut into Amazon's Kindle sales without a price reduction.
As troubling as that might be for Amazon, Munster contends that the e-retailer is in a good position, regardless of the way things turn out. If the Kindle succeeds, great. If not, Munster says, Amazon will still do well with online retail.
"Amazon can lose the Kindle and succeed in broader e-commerce," Munster told Barrons.
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